Press Releases

August 2010

Certificate of Registration – Cancelled

August 4, 2010

The Reserve Bank of India has cancelled the certificates of registration granted to the following companies, having their registered offices at the address shown against them, for carrying on the business of a non-banking financial institution. Following cancellation of the registration certificate the companies cannot transact the business of a nonbanking financial institution.

By the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of a non-banking financial company. The business of a nonbanking financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.

Reserve Bank Cancels the Licence of the Belgaum Catholic Co-operative Bank Ltd., Belgaum, Karnataka

August 5, 2010

In view of the fact that the Belgaum Catholic Co-operative Bank Ltd., Belgaum (Karnataka) had ceased to be solvent, all efforts to revive it in close consultation with the Government of Karnataka had failed and the depositors of the bank were being inconvenienced by continued uncertainty, the Reserve Bank of India delivered the order canceling its licence to the bank after the close of business on August 3, 2010. The Registrar of Co-operative Societies, Karnataka has also been requested to issue an order for winding up of the bank and appoint a Liquidator for the bank. It may be highlighted that on liquidation every depositor is entitled to repayment of his deposits up to a monetary ceiling of ` 1,00,000/- from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Consequent on cancellation of its licence, Belgaum Catholic Co-operative Bank Ltd., Belgaum, (Karnataka) is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Banking Regulation Act, 1949(AACS) including acceptance and repayment of deposits.

For any clarifications, depositors may approach Shri B. Shivananjappa, Deputy General Manager, Urban Banks Department, Reserve Bank of India, Bangalore. His contact details are as below :

Postal Address: 10/3/8, Nrupathunga Road, Bangalore 560 001. Telephone Number: (080) 2211 6260; Fax Number: (080) 2229 3668/2221 0185.

Brahmadeodada Mane Sahakari Bank Ltd., Solapur – Penalised

Augusr 11, 2010

The Reserve Bank of India has imposed a penalty of ` 5.00 lakh on Brahmadeodada Mane Sahakari Bank Ltd., Solapur, Maharashtra in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to Cooperative Societies) for violation of the guidelines for granting unsecured credit facilities, allowing remission of debt in various borrowal accounts, waiving bank guarantee commission, to the Chairman/ director/relatives or to the firms/companies in which any of its directors is interested, submitted inaccurate information to Reserve Bank of India regarding credit facilities to the Director and relatives, granting credit facilities to primary co-operative societies, granting loans to individuals and diversion of the amount thereof to the concerns in which directors were interested, granting unsecured advances in excess of the prudential individual limit, making donations in excess of the prudential limit, not ensuring compliance with the Know Your Customer (KYC)/Anti Money Laundering (AML) guidelines in respect of some loan accounts.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank had submitted a written reply. Based on the reply, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty. Accordingly, it penalised the bank.

Branches of Bank of Rajasthan Ltd. to be Branches of ICICI Bank Ltd. from August 13

August 12, 2010

All branches of Bank of Rajasthan Ltd. will function as branches of ICICI Bank Ltd. with effect from August 13, 2010. This is consequent upon the Reserve Bank of India sanctioning the Scheme of Amalgamation of Bank of Rajasthan Ltd. with ICICI Bank Ltd. The Scheme has been sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. The Scheme will come into force with effect from close of business on August 12, 2010.

State Bank of Indore branches to operate as State Bank of India branches from August 27, 2010

August 24, 2010

All branches of State Bank of Indore will function as branches of State Bank of India from August 27, 2010. Customers, including depositors of State Bank of Indore, will be able to operate their accounts as customers of State Bank of India with effect from August 27, 2010.

The Government of India issued the Acquisition of State Bank of Indore Order 2010. The order dated July 28, 2010 issued by the Government of India was published under Extraordinary Part II-Section 3-sub section (I) in the Gazette of India sanctioning the Acquisition of State Bank of Indore by State Bank of India in terms of sub section (2) of Section 35 of the State Bank of India Act,1955 (23 of 1955). The Order of Acquisition will be effective on and from the close of business on August 26, 2010.

State Bank of Indore branches to operate as State Bank of India branches from August 26, 2010 and not from August 27, 2010

25 August 2010

All the branches of State Bank of Indore will function as branches of the State Bank of India from August 26, 2010 and not August 27, 2010 as mentioned in the Reserve Bank press release no. 287 issued on August 24, 2010. This is due to the fact that the Order of Acquisition will be effective on and from the close of business on August 25, 2010 and not August 26, 2010 as announced earlier.